North America Plant-based Food Market Size and Forecast (2019-2028) – By Geography (United States, Canada, Mexico)

Overview

Executive Summary

The North American plant-based food market had been on a rapid expansion trajectory, propelled by several factors. One of the key drivers was the growing consciousness among consumers regarding the environmental and health repercussions associated with conventional animal-based products. Beyond just supermarket shelves, plant-based alternatives had made their way into dining establishments, including fast-food chains. In a notable instance from 2022, Mary Brown's Chicken expanded its menu by introducing two innovative plant-based options in partnership with Lightlife, a prominent plant-based protein provider.

Factors Driving the Plant based food Market

• Consumer Demand Transition: The transformation in consumer preferences has been a pivotal driver of the burgeoning vegan market. A noticeable shift is observed in the way consumers perceive plant-based alternatives, showcasing a growing inclination towards healthier and ethically conscious choices.
• Variety as a Priority: A key factor propelling the growth of plant-based diets is the modern consumer's desire for variety. This demand for diverse options has spurred manufacturers to diversify their plant-based product offerings, catering to a wide range of tastes and culinary preferences.

As per Makreo's research findings, there is a significant growth opportunity for plant-based food companies. This is attributed to the expanding market base, fueled by the increasing presence of tech-savvy millennials and Generation "I" individuals. The anticipated trend is a rising adoption rate of plant-based food in the near future. Furthermore, North American region boasts a considerable and continuously growing vegetarian demographic, presenting a significant prospect for the plant-based food industry. Conversely, the industry has seen substantial spikes in growth in some years, such as 2027, indicating the potential for rapid expansion in response to changing consumer preferences and market dynamics. Investment and innovation in plant-based food products are likely to continue, further fueling the growth of this market in the coming years.

Performance by Country
United States: The US Plant based food market is highly organized led by emerging companies, many big FMCG players are entering into the plant based food market to stand out from other industries. KFC has introduced plant-based fried chicken across all its U.S. locations after quietly exploring plant-based food options over the past few years. The journey began in 2019 when KFC started testing a plant-based version of its iconic fried chicken in partnership with Beyond Meat. This trial initially took place in select locations in Nashville, Charlotte, and Southern California, and the final iteration of Beyond Fried Chicken was officially launched nationwide on January 10, 2022. In 2021, plant-based food sales exhibited remarkable growth, being 2.5 times faster compared to the period from 2018 to 2020. Approximately one-third of Americans are actively reducing their consumption of meat and dairy products.

Although Plant based food Market in US is witnessing a positive growth but its growing at a slow pace owing to major factors such as increasing inflation, declining demand from a group of consumers due to high price.

Canada: In 2022, Canada positioned itself as a global leader in allocating public funding to foster the growth of plant-based foods, with a strong emphasis on advancing their commercialization and expanding their presence in the market. This strategic focus was underpinned by Canada's significant production of protein-rich crops such as yellow peas, chickpeas, and canola. Additionally, Canada actively promoted the economic potential of plant-based foods through advertising campaigns in prominent publications like the Globe & Mail. Through its foreign direct investment arm, invest in Canada, the country also played an active role in supporting the industry by progressively increasing funding for research, development, and commercialization initiatives. In Canada, more than 40% of the population proactively adopted diets that incorporate a higher proportion of plant-based foods. This notable shift toward vegetarian, vegan, and flexitarian lifestyles has placed plant-based protein sources in the spotlight.

Mexico: Between 2017 and 2021, Mexico witnessed a notable increase in the introduction of new plant-based food products, with a total of 138 such products entering the market during this period. These product launches were primarily concentrated in categories such as snacks, bakery items, and processed fish, meat, and egg substitutes. In the Mexican food industry, plant-based protein ingredients were predominantly utilized in the production of pet food products. Notably, in 2022, a substantial quantity of 88.5 tonnes of plant-based protein ingredients found application in this sector, with a significant portion of 80.2 tonnes being directed towards the manufacturing of dog food. Over the past five years, three prominent companies, namely PepsiCo, Kellogg, and Haribo, emerged as leaders in terms of the highest number of plant-based food product launches. Their contributions have played a significant role in shaping the evolving landscape of plant-based foods within the Mexican market..

Future Outlook
In 2028, it is anticipated that the North American plant-based food market will undergo substantial growth, with projected revenues exceeding USD 27 billion. This robust expansion underscores a pronounced shift in consumer preferences toward plant-based food products, potentially fueled by heightened awareness of health considerations and environmental sustainability.

The escalating recognition of the health advantages linked to a plant-based diet serves as a significant driver for this trend. A growing number of consumers are embracing vegan lifestyles to enhance their overall well-being, mitigate the risk of chronic illnesses, and manage their weight. The increasing availability of vegan products that closely emulate conventional animal-based foods, including plant-based meat substitutes and dairy alternatives, is facilitating the transition to a vegan diet for many individuals. Furthermore, continuous research and development endeavors are leading to the creation of innovative vegan products that closely replicate the taste and texture of animal-derived foods, encompassing plant-based meat alternatives, cheeses, and dairy substitutes. As these products become more accessible and cost-effective, they are garnering a broader and more diverse consumer base.

Scope of the Study
Makreo research has published study on Plant based food Market titled, “North America Plant-based Food Market Size and Forecast (2019-2028) – By Geography (United States, Canada, Mexico”. Market assessment has been carried out using qualitative and quantitative methods and have combined the impact of macroeconomic and micro economic scenario. The market has witnessed many shifts in recent past years. Future outlook has been assessed keeping various influencing factors into consideration and also to assess the expected opportunities in the market.

Segmentation Covered:

By Country:

• United States, Canada & Mexico

Plant based food market by products type:

• Plant based dairy
• Plant based food

Plant based Milk by ingredients:

• Almond Milk
• Soy Milk
• Coconut Milk
• Oat Milk
• Pea Milk
• Rice Milk
• Cashew Milk

Plant based milk and dairy market segmentation by type:

• Milk
• Creamer
• Ice cream
• Yogurt
• Butter
• Cheese
• Tofu+temph
• Cream cheese
• Eggs

Plant based food market segmentation by type:

• Meat
• Meals
• Protein liquids+powders
• Ready to drink beverages
• Bars
• Condiments
• Baked goods

Key Questions Answered

1. How North America Plant-based Food industry has performed in the past and what is the present scenario?
2. How future is expected to grow?
3. What are the key challenges present in the industry?
4. How demand is shaping up for the North America Plant-based Food providers?
5. What are the major types of the North America Plant-based Food Market?
6. Which is the dominant country in North America Plant-based Food Market?
7. How US Plant-based Food industry has performed in the past and what is the present scenario?
8. Who are the key players in the market and what is their present state of performance?
9. What is the investment scenario in North America plant-based food market?
10. What are the major start-ups in the industry?